Indian dairy firm Hatsun Agro reports near 83% rise in Q2 profit

Hatsun Agro Product

19/10/2023 14:26

BENGALURU, Oct 19 (Reuters) - Indian milk processing
firm Hatsun Agro Product  HAPL.NS  on Thursday posted a near 83%
rise in second-quarter profit on strong demand for its milk and
dairy products, with proceeds from a one-time asset sale
contributing.
    The company, which sells products under brands such as Arun
Ice Cream, Arokya Milk and Hatsun Curd, said its profit after
tax rose to 775.7 million rupees ($9.32 million) for the quarter
ended Sept. 30, from 424.8 million rupees a year earlier.
    Revenue from operations rose 9% year-on-year to 19.05
billion rupees, offsetting a 7.4% rise in total expenses to
18.18 billion rupees.
        The cost of raw materials, which accounts for 88% of the
total expenses, grew 25.5%.
  
    Earlier this month, analysts at Elara Capital said they
anticipate sustained sales growth in India's dairy industry as
it continues to see an uptick, driven by increasing demand in
urban centres.
        The Chennai-based Hatsun also realised 101.3 million
rupees from the sale of windmills in September, classifying the
amount under the 'other income' segment in its quarterly
financial result on Thursday.
  
    Peer Heritage Foods  HEFI.NS  on Wednesday reported a more
than 17% jump in its second-quarter profit.
    Shares of Hatsun Agro closed 0.5% up ahead of the results.
   

($1 = 83.2194 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru; Editing by Janane
Venkatraman)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))